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Special pensions to be cut

The Romanian Government has calculated that the state would save between 500 and 800 million euros a year after the unitary pension law enters into force.

Ziarul Financiar · 11 februarie 2010 · 1 min de citit

The Romanian Government has calculated that the state would
save between 500 and 800 million euros a year after the unitary
pension law enters into force. Special pensions, which are now paid
directly by the ministries, will be recalculated and paid by the
National House of Pensions five months after the law enters into
force, with the draft law being adopted in Parliament on
Wednesday.
These pensions (for employees in the Interior and Defence
Ministries, MPs, diplomats, pilots etc) are called “special”
because they are calculated as a percentage (generally 85%) of the
last gross salary or of the last six gross salaries, as opposed to
those paid by the National Pension House, which are calculated
based on contributions made over time by the current pensioners. In
addition, these pensions are increased permanently based on the
salary increases of employees currently holding the respective
positions.

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